News today that Dan Gamel RV was closing four locations in California and Arizona shows just how big a ripple effect mismanagement at an RV manufacturer can have on the entire industry. One of Gamel's locations in Santa Rosa, Calif., sold National RV's motorhomes. Today 40 people are out of work after the dealership could not replace its motorhome line.
The impact of National RV's demise late last year is still being felt and debated. Last week, while attending NTP Distribution's annual dealer conference in Austin, Texas, I spoke with several people who were still speculating on what motivated National RV to shut its doors.
After all, they noted, the company had product on display at the National RV Show in Louisville, Ky. in late November. The staff even called a press conference to promote its new line-up -- a media event that was clearly bungled, which signaled to many observers that something was up. Yet, the company was still taking orders for products Nov. 29 -- two days before it shut its doors Dec. 1.
Conspiracy theorists suggest that the company knew the writing was on the wall shortly after its stock was delisted on the exchange. But, they theorize that National RV was urged not to pull out of the Louisville show because it would cast a pall over the celebration. To have a major manufacturer pull out of the show and leave a gaping hole for people to walk past would not send the right message to show participants, they said.
The conspiracy buffs point to the common link connecting National RV to the RV Industry Association, which managed the Louisville Show. David Humphreys, the former long-time president of RVIA, served as the chairman of the board at National RV during that fateful week.
Others in the industry were scratching their heads wondering why National RV shut its doors at all, considering the firm had nearly $40 million in assets, according to one report. People wondered why a company with that kind of equity would be forced to discontinue operations, which opens the doors for more conspiracy theories....
It's a debate that people will likely have for months to come.
But, the argument regarding "the message" at the Louisville show is valid. Because if National RV had pulled out of the show that week, the event may not have been as successful if cautious dealers made different buying decisions for which they are paying the price now.
Like Dan Gamel was quoted as saying, "I don't have much of an appetite to operate in this climate and lose money. We're going to operate the stores that make money."
But, that would require honesty and openness from all business partners.